In March 2022, Amazon’s board of directors authorized it to buy back up to $10 billion of its stock. The stock buyback will take place over a multi-year period. Amazon may not buy back the full $10 billion of its stock; the board’s authorization is simply the maximum amount of stock that can be repurchased. […]
Continue reading
Tag Archives: treasury stock
When comparing 2017 to 2008, how can Target Corporation’s EPS rise, yet its net earnings decrease?
November 16, 2017 
0 Comments
Target Corporation (NYSE: TGT) has been repurchasing its common stock over the past several years. Target’s fiscal year ends on the Saturday nearest to January 31. Use the information from Target’s 2017 and 2008 fiscal years (a ten-year gap) in this table to answer the questions that follow. Target Corporation Comparing 2017 EPS to 2008 […]
Continue readingHow does Apple’s issuance of bonds and buyback of its own stock impact its accounting equation?
May 16, 2017 2 Comments
In May 2017, Apple Inc., filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple issued $10 billion in bonds in February 2017 in the US and $1 billion in Taiwan.) With the bond proceeds, Apple will be buying back its own stock. Apple has […]
Continue readingHow would Microsoft’s $40 billion stock buyback and cash dividend impact its balance sheet?
November 15, 2016 0 Comments
Microsoft Corporation (MSFT) recently announced plans to buy back up to $40 billion of its own stock. In the same announcement on September 20, 2016, Microsoft also stated that it would be increasing the cash dividend by 8% for the dividend to be paid on December 8, 2016, to shareholders of record on November 17, […]
Continue readingWhat contributed to the increase in Caterpillar’s earnings per share in 2014?
October 1, 2015 0 Comments
Note: This article is a special guest post written by Dr. John Dexter, Jr., CPA, CGMA, Associate Professor, Edinboro University, jdexter@edinboro.edu. Thanks, John, for the contribution! In its Form 10-K for the year ended December 31, 2014, Caterpillar Inc. (CAT) reported diluted earnings per share (EPS) of $5.88, an increase of $0.13 from the prior […]
Continue readingWhat does Kohl’s 2015 Form 10-K communicate about its stockholders’ equity?
April 14, 2015 2 Comments
Kohl’s Corporation (KSS) operates department stores in 49 states in the U.S. and has annual sales in excess of $18 billion. Its fiscal year ends on the Saturday closest to January 31 each year. Kohl’s has several line items comprising its stockholders’ equity. See the excerpts to follow from Kohl’s 2015 Form 10-K: its Consolidated […]
Continue readingHow would Crocs account for the conversion of its preferred stock into common stock?
April 3, 2014 0 Comments
At the end of December 2013, Crocs Inc. announced that Blackstone Group is investing $200 million into the footwear company in the form of a preferred stock purchase. In three years, the preferred stock shares owned by Blackstone Group will convert into common shares if the Crocs common stock market price rises to a certain […]
Continue readingWhat is the balance sheet impact of Crocs’ repurchase of its own shares of stock?
February 3, 2014 0 Comments
At the end of December 2013, Crocs Inc. announced that Blackstone Group is investing $200 million into the footwear company in the form of a preferred stock purchase. Crocs plans to use the $200 million plus another $150 million of cash it already has on hand to repurchase its own common shares during the first […]
Continue readingHow does a stock buyback impact AutoZone’s balance sheet?
January 2, 2014 0 Comments
In December 2013, the Board of Directors of AutoZone Inc., an auto parts retailer, approved an increase of $750 million in its stock buyback program. Since 1998, AutoZone’s board of directors has approved $14.2 billion in buybacks. Questions On the date of the announcement that AutoZone has authorized the increase in its share buyback program, […]
Continue reading
Accounting in the Headlines 